Axeing of Pre-Budget Report wins a cheer from the City

City economists today applauded the demise of the Pre-Budget Report in favour of a slimmed-down autumn statement as 'no great loss'.

The PBR was introduced by then-Chancellor Gordon Brown in 1997 to consult on measures planned for the main Budget the following year.

But following 2008's financial crisis, the PBR took on much greater significance as Alistair Darling unveiled emergency measures including slashing VAT to 15%.

James Knightley, senior UK economist at ING Bank, said: "They don't really need to do the PBR any more. When (the Treasury) have set the long-term position in place, they don't need to tinker with it unless something significant happens. It's no great loss."

Investec chief economist Philip Shaw added that he was "not sorry to see it go". He said: "The PBR had become a mini-Budget exercise rather than the discussion document on the Budget. On that basis, you have to question whether it was worth effectively having two Budgets in one year. An update on the forecasts is all we really need."

By law the Government has to update its forecasts — now delegated to the independent Office for Budget Responsibility — twice a year. A Treasury spokesman said: "An economic forecast and statement will be presented to Parliament in the autumn. Further details will be announced to Parliament in the usual way."